Xiaomi’s electric vehicle division is accelerating on multiple fronts simultaneously, announcing leadership changes for international expansion, reports of a second vehicle brand, and plans to manufacture its own batteries — all while its stock languishes nearly 50 percent below its 52-week peak.
The Beijing-based tech giant has established a subsidiary called Beijing Xiaomi Jingxu Technology to build a battery factory with an annual capacity of 15 gigawatt-hours. The move is designed to reduce reliance on external suppliers such as CATL and BYD’s FinDreams Battery unit, giving Xiaomi greater control over the most expensive component in an electric car. The company has earmarked roughly 200 billion yuan for research and development over the next five years, spanning artificial intelligence, battery technology, and powertrain engineering.
A Second Brand Takes Shape
Chinese automotive media have reported that Xiaomi is preparing to launch a sub-brand called Skynomad, positioned slightly below the main Xiaomi EV marque. The new brand would focus exclusively on range-extender vehicles, with a flagship SUV measuring over 5.2 metres in length — a direct competitor to the Li Auto L9. Launch is slated for the second half of 2026. A second model, a camping van with a pop-up roof tentatively named Mandao, is also reportedly in development.
The Skynomad initiative aligns with Xiaomi’s broader product roadmap. CEO Lei Jun has set a delivery target of 550,000 vehicles for 2026, and four new models are expected to help reach that goal: a facelifted SU7 in the first half of the year, a seven-seat range-extender SUV also in the first half, an SU7 Executive Edition in the second half, and a five-seat range-extender SUV in the second half. With the range-extender models, Xiaomi is taking direct aim at Li Auto and the Huawei-backed AITO brand, both of which have been gaining ground in China’s rapidly electrifying market. In April, the penetration rate for electric and hybrid vehicles in China surpassed 60 percent for the first time.
Management Reshuffle for Global Ambitions
Yu Liguo, vice president of the automotive division, has been appointed to lead the newly created Overseas Business Preparation Group, reporting directly to Lei Jun and president William Lu. His mandate is to lay the groundwork for entering international markets. Production responsibilities have been handed to Song Gang, a former Tesla manager who oversaw the construction of Tesla’s energy storage factory in Shanghai. Song retains his role as chief of staff for the automotive division and also reports directly to Lei Jun.
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The timeline for international expansion is concrete: Europe is targeted for the second half of 2027, followed by right-hand-drive markets in the first half of 2028. Xiaomi has already established a research and development centre in Munich, led by Rudolf Dittrich, who previously worked on the BMW M4 GT3 project. The company’s focus will be on premium segments in developed markets.
Delivery Numbers and a Recall
Xiaomi delivered an estimated 109,000 vehicles in the first four months of 2026, representing roughly 20 percent of its annual target. In April alone, the company delivered over 30,000 units. The high-performance YU7 GT SUV is set to launch at the end of May, boasting peak power of 738 kW and a target price between 450,000 and 500,000 yuan.
On the operational side, Xiaomi is managing a recall affecting nearly 117,000 units of the SU7 Standard, produced between February 2024 and August 2025. The issue involves a safety problem with the highway driving assistant, which the company is fixing via a software update — no physical workshop visit is required.
Stock Under Pressure
Despite the flurry of activity, Xiaomi’s shares have struggled. The stock currently trades at around 3.40 euros, roughly 49 percent below its 52-week high of 6.69 euros and down about a quarter over the past year. Analysts expect full-year earnings per share of 1.22 CNY.
Investors will get a clearer picture of the financial impact of Xiaomi’s EV ramp-up when the company releases its unaudited first-quarter results on May 26, followed by the full quarterly report on May 27. The market will then have to decide whether the model offensive and vertical integration strategy can finally shift the stock’s trajectory.
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